The number of securities class action lawsuit filings rose slightly in 2014 compared to 2013, although the number of filings during the year was below longer term annual average number of filings. Companies in the life sciences sector were particularly hard hit, as were companies in the computer services and in the financial services and
Guest Post: Second Circuit Rules for Defendants in Landmark Insider Trading Case
In the following guest post, Susanna Buergel, Charles Davidow, Andrew Ehrlich, Brad Karp, Daniel Kramer, Richard Rosen and Audra Soloway, all of whom are litigation partners at Paul, Weiss, Rifkind, Wharton & Garrison LLP who are members of the Firm’s Securities Litigation Practice group explain the significance of the Second Circuit’s decision United States v.
Law Firm Organizes U.K. Lawsuit Against Tesco, Financed by Litigation Funding Firm
After U.K.-based Tesco PLC’s announcements of accounting “irregularities” and the subsequent departure of the company’s Board chair, investor lawsuits soon followed. But as discussed here, these lawsuits were filed in the United States, on behalf of investors who had purchased American Depositary Receipts in the United States. In light of the U.S. Supreme Court’s
Calculating Damages in Securities Class Action Lawsuits
Because securities class action lawsuits under Section 10 of the Securities Exchange Act of 1934 and Rule 10b-5 so rarely go to trial (a topic I addressed in a recent post, here), questions about how damages are calculated are not often addressed directly. Section 28(a) of the ’34 Act specifies that no plaintiff shall
Securities Trial Jury Holds Former Longtop CFO Responsible for One Percent of Damages
As noted in a post yesterday, last Friday a federal jury held Derek Palaschuk, the former CFO of Longtop Financial, liable for the company’s financial misrepresentations. On Monday, the jury deliberated further on the percentage of investors’ damages for which Palaschuk is responsible. According to Nate Raymond’s Nov ember 24, 2014 Reuters article (here
Rare Securities Suit Trial Produces Jury Verdict Against Former Longtop Financial CFO
On November 21, 2014, after a securities class action trial that lasted less than three days and after less than a day of deliberation, an eight-person jury entered a verdict holding former Longtop Financial Technologies CFO Derek Palaschuk liable for the company’s alleged misrepresentations about its financial condition. According to Nate Raymond’s November 21, 2014
Two Legal Surveys: Foreign Disputes in U.S. Courts and Fee-Shifting Bylaws
An ever-present anxiety for globally-active non-U.S. companies is the possibility that they might find themselves having to deal with litigation in U.S. courts. This concern is warranted because certain attributes of the U.S. legal system – including the absence of loser pays attorneys’ fee model and the availability of discovery and jury trials – provide
Another Accounting Scandal-Related Securities Suit
Earlier this week I wrote about the accounting scandal that has hit the UK-based grocer, Tesco, and the securities class action lawsuit against the company that followed in its wake. Now another company has reported accounting irregularities – and the company involved has also been hit with a securities class action lawsuit.
On October 29,
O.K., So Here’s the First Ebola Outbreak-Related D&O Lawsuit
Like everyone else, I have been following the Ebola outbreak news with a mixture of horror and fascination. I never in a million years imagined that I would have occasion to write about the Ebola outbreak on this blog. Perhaps due to a lack of imagination on my part, I never foresaw that there might
Tesco Accounting Scandal Draws Securities Class Action Lawsuit
When Tesco PLC announced on September 22, 2014 that its previously forecast first-half profit had been overstated by £250 ($408.8 million), the news of the accounting irregularities was “serious,” as Tesco plc’s CEO of less than a month’s standing at the time put it. The company also announced that the overstatement, first flagged when an